Recently, the United States’ foreign-held debt reached a record high of ~$5.29 trillion. This debt reflects a 72.3% overall debt increase to foreign entities under the current administration’s term and includes ~$1.16 trillion owed to America’s largest foreign creditor, China, who owns approximately 22% of the total foreign debt. In the status of foreign creditors, Japan is a very close second with approximately $1.12 trillion in payments owed, or about 21% of the country’s total foreign debt. As a category, foreign debt currently makes up ~33.4% of the country’s total approximately $15.86 trillion debt.
But nationalists need not fear, for these foreign entities are not the largest independent holders of total American debt. That nefarious distinction belongs to the Federal Reserve – which now holds ~$1.67 trillion, or approximately 10.5% of the entire national debt – in monetized, Keynesian inflated, depreciation-causing debt.
The total national debt for the reported period also reflects roughly $4.81 trillion, or 30.3%, of intragovernmental IOUs (i.e., debt incurred from “borrowing” [stealing?] from other ostensibly obligated fiscal pots, such as the Social Security and Medicare trust funds).
With congressional disapproval ratings averaging somewhere around 80%, does the fact that a perennial presence of so many incumbent congressional representatives and senators reflect poorly on the intelligence, awareness, and/or engagement of the American constituency? It seems clear enough to me that the American populace is eventually going to get what it wants with these fiscal and monetary policies; the real question will ultimately be will we want what we get?